The Rezidor Hotel Group board has unanimously recommended
that Rezidor shareholders reject HNA Sweden Hospitality Management's takeover
offer for the outstanding 48.7 percent of Rezidor shares.
HNA Tourism Group acquired its majority stake in Rezidor in
December when it acquired Carlson Hotels, which owned 51.3 percent of Rezidor
shares. Swedish law requires HNA to enable shareholders to sell shares if they
are unhappy with the new ownership.
The Rezidor Hotel Group board said HNA's offer of
SEK 34.86 cash per share, 6.3 percent lower than Rezidor's closing price on the
Nasdaq Stockholm the day before HNA's takeover offer, does not reflect the
value of Rezidor. The board cited its continuing asset-light management
strategy and its recent cost-containment plan among the reasons to assume
Rezidor value will continue to grow. Additionally, the board highlighted that regulatory
approvals could delay HNA's offer as many as nine months after acceptance
without additional compensation to shareholders. The acceptance period for the
offer is expected to end on March 10.